Core Insights - As of the end of July 2025, foreign institutions held 3.93 trillion yuan in the interbank bond market, accounting for approximately 2.3% of the total custody volume of the market [1] - Among the types of bonds held by foreign institutions, government bonds amounted to 2.02 trillion yuan, representing 51.4% of the total, while interbank certificates of deposit were 0.98 trillion yuan (24.9%), and policy financial bonds were 0.76 trillion yuan (19.3%) [1] - In July, three new foreign institutional entities entered the interbank bond market, bringing the total to 1,171 foreign institutions, with 608 entering through direct investment channels and 834 through the "Bond Connect" channel [1] - The trading volume of foreign institutions in the interbank bond market in July was approximately 1.44 trillion yuan, with an average daily trading volume of about 628 billion yuan [1]